Senate Committee on Ways and Means and House Committee on ...

February 27, 2007

The Honorable Dwayne Umbarger, Chairperson
Senate Committee on Ways and Means
Room 120-S, Statehouse

and

The Honorable Sharon Schwartz, Chairperson
House Committee on Appropriations
Room 514-S, Statehouse

Dear Senator Umbarger:

The items contained in this memo correct errors made in posting the detailed budgets or
in publishing The FY 2008 Governor’s Budget Report that was submitted to you in January 2007.

State General Fund FY 2007 FY 2008
All Other Funds
$ -- $ --
All Funds 597,105 (2,000,000)

$ 597,105 $ (2,000,000)

FTE Positions 6.00 5.00
Non-FTE Unclassified Permanent (6.00) (5.00)

Total Positions -- --

Kansas Lottery

1. Position Correction

When the Kansas Lottery submitted its budget in the fall of 2006, it intended to convert
all 6.00 of its non-FTE unclassified permanent positions to regular FTE positions. Instead of a
staff consisting of 81.00 FTE and 6.00 non-FTE positions, all 87.00 would be regular FTE
positions. However, the conversion was inadvertently omitted from the budget, and the error
was not caught until after the Governor’s budget was released. This correction will report
positions for the Lottery the way the agency originally intended.

2

FTE Positions FY 2007 FY 2008
Non-FTE Unclassified Permanent
Total Positions 6.00 6.00
(6.00) (6.00)

-- --

Board of Veterinary Examiners

2. KSIP Adjustment

Budget instructions require that agencies budget for all available monies in their Kansas
Savings Incentive Program (KSIP) accounts in the current fiscal year. The Board of Veterinary
Examiners did not include KSIP funds when it submitted its budget in the fall of 2006.
Therefore, $13,224 was added to the budget to account for these expenditures. However, the
correct amount should have been $10,329. This correction to The FY 2008 Governor’s Budget
Report will reduce $2,895 from the amount originally included in the budget for FY 2007.

FY 2007 FY 2008

State General Fund $ -- $ --
All Other Funds (2,895) --
All Funds
$ (2,895) $ --

Department of Education

3. School Finance Consensus Capital Improvement State Aid

On November 9, 2006, staff from the Department of Education, Division of the Budget,
and Legislative Research Department met to review more recent enrollment data, property tax
revenues, and local option budget usage in order to update school finance costs. At that meeting,
numerous adjustments to the Department’s budget were made, and one of those items was an
agreement that expenditures for Capital Improvement State Aid would be higher than previously
thought in both FY 2007 and FY 2008. This item was previously treated as a demand transfer,
but in recent years has been a revenue transfer from the State General Fund.

The adjustment for FY 2007 was $600,000 and $500,000 for FY 2008. The FY 2007
adjustment was inadvertently left out of the Governor’s recommended budget. In FY 2007,
$600,000 in expenditures should be added to the Department’s budget from all funding sources,
and the State General Fund revenues should be adjusted in April to account for the transfer of
funds as well.

State General Fund FY 2007 FY 2008
All Other Funds
All Funds $ -- $ --
600,000 --
--
$ 600,000

3

Board of Regents

4. KAN-ED Funding

It was the Governor’s intention to include $8.0 million from the Kansas Universal
Service Fund and $2.0 million from the State General Fund for operation of the KAN-ED
broadband network for FY 2008. Instead, $10.0 million from the Kansas Universal Service Fund
and $2.0 million from the State General Fund were included in the budget. This correction to
The FY 2008 Governor’s Budget Report will remove the overstated $2.0 million from the
Universal Service Fund in the Board of Regents’ budget in order to reflect the Governor’s
recommendation correctly.

FY 2007 FY 2008

State General Fund $ -- $ --
All Other Funds -- (2,000,000)
All Funds
$ -- $ (2,000,000)

Department of Agriculture

5. Position Correction

The Governor recommends a budget enhancement for the Department of Agriculture to
open an office in southeast Kansas to address water issues related to the Ozark Plateau Aquifer
System and the Spring River. This enhancement includes a new Environmental Scientist II
position, which was reported as an FTE position. However, the position should be a non-FTE
unclassified permanent position. This correction to The FY 2008 Governor’s Budget Report will
accurately reflect the Governor’s recommendation for the agency’s workforce for FY 2008 in
connection with the proposed new program.

FY 2007 FY 2008

FTE Positions -- (1.00)
Non-FTE Unclassified Permanent -- 1.00
Total Positions --
--

Sincerely,

Duane A. Goossen
Director of the Budget